Housing Choice Voucher (HCV) Program HAP Renewal - July Through October, 2017

June 2017

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HUD recently provided letters explaining the Housing Choice Voucher program HAP disbursement process from July to October 2017. HUD has determined the funds needed for disbursements for July through October 2017, on the basis of PHA-reported HAP expenses in Voucher Management System (VMS) for the month of March 2017, the most recent month for which HUD has validated VMS data. The date HUD downloaded the VMS was May 18, 2017. HUD considered March data in lieu of the most recent three months of data to be more accurate at this time due to national leasing trends. HUD also increased funding from the March HAP expenses by 2% for inflationary purposes.

HUD also transitioned Restricted Net Position (RNP) back to HUD Held Reserves (HHR) by decreasing the July HAP disbursement by the amount of RNP reported as of December 31, 2016. HUD is not reducing or recapturing PHA’s RNP, but holding onto the funds until the PHA needs them.

One last item explained in the letter was when there would not be enough funding available to cover HAP costs through October. HUD is projecting PHA funding based on renewal obligations (line six of the chart below or Attachment A of the letter provided), then HUD is taking the HAP disbursement needs from the March VMS (line 10 – line 18) and spreading them out over the four-month period of July through October. If there is not enough funding available, HUD is reducing the October disbursement. The PHA should notify the FMC and their respective field office for guidance if the PHA believes it would be short on funding.
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If you have questions regarding matters discussed above, please contact Brian Alten.

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